Oil Prices with Trump a Win!

Oil Prices Low but Trump Could be the Boost Alberta Needs

Most markets are back to normal after the shock of a Donald Trump win in the US election this week. Although losses and have bounced back, oil still faces pressure due to OPEC's cut in production (see OPEC in the News Again 10/06/16) But Trump is here!

Two Priorities for Trump – Do They Help Canada?

Yes! Alberta oil sands will benefit from trump being president. His goals are to prioritise tax cuts and cut deregulation. It was repeatedly mentioned during Trump's election campaign. He made no apologies for being fossil-fuel friendly and his top adviser on energy, Harold Hamm, expects him to roll back the Obama administration's heavy regulations on the oil and gas industry.

Clean Power Plan Scrapped – Oil Economy Bound to Rebound

Hamm recently told the Financial Times that he believes Mr. Trump will follow the two guiding principles of tax cuts and deregulation as ways to stimulate economic growth. He has also made assurances to reduce dependence on Middle East oil and he has said that he is in favour of the Keystone XL pipeline from Alberta to refineries in the U.S. gulf. That will help the Alberta economy immensely.

Oil Market is Still a Place to Invest

Tom Pickering, founder and chief investment officer of trading the firm Auspice Capital has said that a Donald Trump presidency could mean the return of a risk premium for oil prices.

A risk premium is the return in excess of the risk-free rate of return an investment is expected to yield; an asset's risk premium is a form of compensation for investors who tolerate the extra risk.

Is it all Talk - What Should Canada Do?

What are Trump's real plans? What we know for now, just days after the election is that things are looking up for the oil sands business. According to the Financial Post, TransCanada Corp is still fully committed to Keystone XL. It plans to engage with President Elect Donald Trump and his new administration in the near future.

Christopher Ashby
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